Frequently Asked Questions

Dr K Market Direction Model
When the model siwtches signals, do I buy the 3-times etfs? And if a neutral pick happens, do I sell them?

Each investor must determine their risk tolerance levels. This will determine how much exposure one wishes to take when the model switches signals. Aggressive investors may go 100% long a 3-times ETF such as TYH or TYP depending on the signal. Conservative investors may only go 30% long such an ETF or 50% to 100% long a 1-times ETF such as SPY or QQQQ.

On a neutral signal, one should at least reduce or entirely sell their positions. The record of the timing model is based on going to 100% cash on a neutral signal, 100% long NASDAQ Composite or TYH on a buy signal, and 100% short NASDAQ Composite or TYH on a sell signal. For timing model results using the NASDAQ Composite and TYH, go here.

Published: Nov 19 2010, Modified: Jun 10 2016